Multiconsult Newsletter, April 2007

Small offshore jurisdictions are sometimes subject to negative public comments. One of the criticisms levelled at them is that they are tax havens, a term loaded with many undertones, such as being an ideal location for money launderers. Mauritius has had its share of such accusations, in spite of its having signed 34 avoidance of double taxation agreements (DTA) with other countries. It is common knowledge that tax havens do not sign DTA’s, since they do not charge income tax.

Mauritius, along with other small offshore jurisdictions, is expected to be whiter than white in order to try and rebut unfair accusations, coming mainly from large countries which are unfortunately oblivious – or ignorant – of what is taking place in their own backyard. The Economist magazine (February 24, 2007) recently recalled that a federal government agency had reported that few of the US states "collect information on the true owners of companies set up within their borders", with Delaware